Investing in Madagascar

Investing in Madagascar can be quite profitable, especially if you invest in the diamond industry. Many of the industries include government investments. There are a number of small scale industries which are mainly run by individuals or by communities in the rural area. Foreign investment plays a great role in Madagascar economy.

Government supports foreign investment in Madagascar. Investing in Madagascar has not been easy enough foreign investors in the past. However, with every passing day, new foreign investments in Madagascar are coming up, which indicates that the investment climate has been improved by the government. Direct foreign investment is emphasized.

About 50% of the EPZ companies are European, 20% are Mauritian, 20% Asian and 5% bare Malagasy. Finally 4% of the EPZ companies are US. These companies provide job opportunities to a great extent. The Ministry of Industry has declared that more and more foreign companies are showing interest to invest in Madagascar. The cheap and well-trained labor force also attracts foreign companies.

World Bank, USAID and BAMEX are working in the mining sector along with the Ministry of Energy and Mining. Foreign investment was free during the privatization process. Foreign investment is neither prohibited nor controlled. At the time of initial investment there is no discrimination between foreign investors and local investors.

Funds like investment loans, loan repayments, earnings, lease payments and others, which are associated with foreign investment, can be converted or transferred. Investment in Madagascar is easy enough as inflow and outflow of fund of remittances for capital, debt service, profits or intellectual property are not prohibited or limited. Investing in Madagascar thus becomes easy and smooth.